Al Mazaya Real Estate Development Co is calling for the real estate industry across the Arab world to produce better data to measure the industry’s growth and to allow developers to better quantify the risks involved when undertaking projects.

Al Mazaya, which is listed on both the Kuwait Stock Exchange and Dubai Financial Market (DFM), has projects across the GCC and the Levant. The company argues that the industry needs a “quantitative approach to understanding the processes of the market that provides information, figures and data to analyse the growth of this sector, and to provide a true scientific and less haphazard understanding of the industry”.

Al Mazaya’s executive vice-president, business development, Salwa Malhas, says that independent statistical analysis is mostly absent from the real estate industry and “a neutral pricing index is missing. What is needed is an objective price index that measures the changes in prices and provides a better vision for the market.”

She also says that to improve the investment environment, the generation of conflicting figures, statistics and data regarding the growth of the industry needs to be avoided. She also emphasised the dangers that result from reports exaggerating the costs and values of investments required or expected. “Data needs to be made available that is accurate and can be fine-tuned, leaving no room for doubt”, she says.

“The absence of accurate data issued from trusted committees authorised to give reports and forecasts of the market has created divergence in the figures presented to investors,” adds Malhas. For this reason, the task of real estate companies should not be limited to construction alone but should contribute in various ways to the development of the real estate sector in the whole Arab World, she argues.
And despite the evolution, growth and development of the Arab property market there is still more to be done, she says. “The industry still needs more creative ideas that not only convey its success but also sustains and nurtures it to create more vital projects.”

Source: www.khaleejtimes.com

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